Unit 1 - The Business Environment Flashcards
Private sector
The Part of the national economy that is not under direct state control
Public Sector
The part of an economy that is controlled by the state
Private limited company
A type of company that offers limited liability or legal protection for its shareholders but that places certain restrictions on its ownership.
Public Limited Company
A company whose securities are traded on a stock exchange and can be bought and sold by anyone
Government Owned
A government-owned corporation is a legal entity that undertakes commercial activities on behalf of an owner government.
Break Even
Reach a point in a business venture when the profits are equal to the costs.
Market Share
Market share represents the percentage of an industry, or market’s total sales,
Provision
A provision is an account which records a present liability of an entity.
Procurement
Procurement is the process of finding, agreeing terms, and acquiring goods, services
Flat Structures
flat organisation has few or no levels of middle management between staff and executives
Hierarchical/Tall structures
Pyramid-like ranking of ideas, individuals, items, etc.,
Centralised
Centralised organisational structures rely on one individual to make decisions and provide direction for the company
Decentralised
Decentralisation is a which daily operations and decision-making responsibilities are delegated by top management to middle and lower-level mangers within the organisation, allowing top management to focus more on major decisions
Matrix
A matrix type of organisational structure combines the traditional departments seen in functional structures with project teams.
Division of work/labour
Dividing a job into many specialized parts, with a single worker or a few workers assigned to each part.
